Contract Management Quiz

Which of the following is a characteristic of a fixed-price contract?

• The buyer bears the risk

• The price may change depending on costs

• The seller bears the risk

• No written agreement is needed

In a cost-plus-fixed-fee contract, who bears more risk?

• The seller

• The project manager

• The buyer

• The procurement office

Time and materials contracts combine which of the following elements?

• Only fixed cost

• Only variable cost

• Fixed-price and cost-reimbursable

• Only incentive-based fees

What is the minimum number of bids recommended when getting estimates?

• 2

• 3

• 4

• 1

Which department typically handles purchasing in an organization?

• Accounting

• Engineering

• Purchasing

• Legal

What is one disadvantage of involving the purchasing department?

• They lack expertise

• They may cause overhead

• They are always slow

• They increase product quality

What financial metric is often used in cost/benefit analysis?

• ROI

• WBS

• RFI

• PERT

Which contract type is best when scope is clearly defined and unlikely to change?

• Time and Materials

• Cost-plus-fixed-fee

• Fixed-price

• Incentive-based

Quality is defined as:

• Meeting deadlines

• Satisfying customer emotions

• Conformance to requirements

• Being better than competitors

Grade refers to:

• Quality level

• Defect frequency

• Ranking among similar products

• User satisfaction level